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  • The California legislature passed Assembly Bill (AB) 1949, requiring California employers to offer employees five days of bereavement leave. Five days would be provided to each employee each time they lose a:

    • Spouse
    • Child
    • Parent
    • Sibling
    • Grandparent
    • Grandchild
    • Domestic partner
    • Parent-in-law

    While bereavement leaves may be unpaid, employees may choose to use their accrued vacation, sick leave, or other paid time off options, such as personal days. If California Governor Newsom signs the bill, it would be the third state to mandate this type of time off, alongside Oregon, Maryland, and Pennsylvania. While there have been previous versions of a similar bill, this year’s version has bipartisan support, meaning opposing political parties have found common ground through compromise.

    Understanding AB 1949

    AB 1949 would cover all public employers and private businesses that have at least five employees in California. Full-time and part-time employees are eligible for this bereavement leave if they have worked for the business for at least 30 days. Employers can request documentation providing evidence of the family member’s death. These documents include a death certificate, published obituary, or other written verification of death, burial, or memorial services. However, all information must be made confidential. In addition, when employees take bereavement leave, it must be completed within three months of the date of death. The days of leave do not have to be consecutive.

    What This Means For Small Business Owners

    While many employers currently give bereavement time to employees, this bill would formalize this benefit in California. If you are a small business owner in California, it’s vital to look at your current policy and determine if it’s being implemented properly. If Governor Newsom signs the bill and employers fail to comply with the new law, they’d have to pay past and future:

    • Lost income and benefits
    • Emotional distress damages
    • Punitive damages

    It’s important to note that AB 1949 is separate from time off under the California Family Rights Act (CFRA). The CFRA authorizes eligible employees to take up to 12 weeks of paid or unpaid job-protected leave during a 12-month period.

    The Benefits Of Partnering With A PEO

    As a business owner, you understand the importance of staying compliant with laws and regulations. In addition, providing your employees with a competitive benefits package sets you apart from competitors and allows you to attract and retain quality talent. Partnering with GMS ensures you are compliant and attracting and retaining quality talent. Our team of experts works with you through the constant law changes, so you don’t have to worry about that added stress and time. Contact us today to get started.

  • On August 12th, 2022, the Inflation Reduction Act went into effect. As inflation continues to rise throughout the United States, the act calls for a significant reduction in prescription drug pricing. Various implications come along with the new federal drug price as it moves across healthcare systems.

    Three Provisions

    A recent webinar panel discussed three major changes in prescription drug pricing:

    1. Price negotiation – This allows the government to regulate certain drugs under Medicare and the Drug Price Negotiation. This pushes the government to establish a maximum fair price (MFP) for certain prescription drugs. As a result, H.R. 3 requires the Secretary to consider research and development costs, market data, production and distribution costs, and therapeutic alternatives. 
    2. Inflation penalties – Pharmaceutical manufacturers must pay rebates on drugs covered by Medicare Part B and Part D if the drug price rises faster than the inflation rate. 
    3. Medicare Part D – This creates a $200,000 out-of-pocket cap on Part D prescription drug spending. 

    Industries Affected

    Due to the creation of this revision, there are five key sectors of the healthcare system that are affected, including: 

    • Drug manufacturers 
    • Payers
    • Providers
    • State Medicaid agencies
    • Patients

    Deduction Of Manufacturer’s Revenue

    Drug manufacturers not subject to negotiation will see a decrease in revenue as others choose to decrease their prices. Due to inflation caps, price increases will be limited. A significant benefit of these regulatory changes will be a smaller out-of-pocket cost for consumers.

    Medicare Part D Cap

    The regulations have established that Part D beneficiary premiums are capped for 2024 through 2029. In addition, there will be an annual beneficiary cost-sharing cap effective in 2025. This will also eliminate catastrophic beneficiary cost-sharing for 2023 and 2024. The negotiated drug prices and inflationary rebates may reduce Medicare Advantage plan costs for Part B drugs.

    The Impact GMS Has On Your Business

    As a business owner, you want to ensure that your benefits plan continues to get you the lowest rates. When you partner with GMS, you gain access to an Rx Specialist who can support you and your employees find the most cost-effective option. Additionally, we offer control of premiums, access to data and networks, and options you can’t find elsewhere. Learn more today!

  • As the third quarter comes to an end, that means it’s time to start thinking about open enrollment. Open enrollment is the annual period when individuals can begin enrolling in a health insurance plan for the upcoming calendar year. Your employees may choose to add or drop health insurance, allowing them to make changes to their coverage. As a small business owner, this time of year can become overwhelming. Open enrollment for 2023 runs from November 1st, 2022, to January 15th, 2023.

    Due to recent changes, signing up for benefit plans during the open enrollment period has transitioned into a more digitalized process. Not only does this help you as an employer, but it also streamlines the process, making it less stressful for your employees. As open enrollment approaches, it’s crucial to increase engagement from year to year for your program to be successful.

    Raising Engagement During Open Enrollment

    Make an impact with your employees during the open enrollment period and drive engagement to an all-time high with the following advice:

    • Clearly communicate dates to your employees
    • Create engaging benefit planning meetings for all employees
    • Ask your employees what they want
    • Provide simple and engaging resources
    • Continue the benefit conversation 
    • Put emphasis on creating goals and tracking progress

    Understanding what your employees want and need is the key to successful open enrollment. By taking a continuous and proactive approach throughout the year, you can ensure that your employees know the resources and support available.

    Stress No More

    Benefits are complex making it easy for employees to become overwhelmed by the information they need to make informed decisions. When you partner with GMS, we take on the burdens of the open enrollment period so you can focus on other aspects of your business. Your designated benefits account manager works diligently with you and your employees to provide the best benefit plans while also educating your employees. You gain access to a team of experts who can train employees on how their plan works and answer difficult coverage questions. We get it. Health insurance is complicated. Let us provide guidance on how to utilize your plans best, maintain compliance, and stay on top of the Affordable Care Act regulations. Contact us today.

  • In the wake of the pandemic, employees’ views of work-life balance have significantly changed. As a result, the term “quiet quitting” was established. While there is not one specific definition, the term rejects the notion that employees should go beyond their job description without additional benefits.

    According to NPR, “supporters argue that quiet quitting is a way to safeguard your mental health, prioritize your family, friends, and passions, and avoid burnout.” However, the term has nothing to do with quitting, completing the bare minimum, or slacking at work. When it comes to quiet quitting, Americans are working to integrate their personal lives with their work lives.

    How It Works

    According to Forbes, the following are attributes of quiet quitting: 

    • Showing up to work on time, no earlier
    • Taking a lunch break, not eating at their desk
    • Leaving on time
    • Turning off emails and calls outside of work hours
    • No extra activities 
    • Not volunteering for work events
    • Helping eas other’s workloads

    Is It Effective? 

    Despite the popularity of the quiet quitting trend, disengaging entirely from the workplace may not be the best option. As an employer, begin taking note of situations when employees become distant. If you notice that an employee is less driven when completing everyday tasks, communicate with them. By communicating with your employees, you can establish a plan that best works to suit their needs.

    Many believe that by setting boundaries at work, they are less likely to experience burnout. However, addressing the challenges head-on can help employers regain control. If the employee is not completing their everyday tasks, it might be time to part ways.

    GMS’ Support 

    When you partner with GMS (Group Management Services), you gain immediate access to an HR Account Manager. This support can guide you in the best way to manage a disengaged employee, who may be taking part in the phenomenon of quiet quitting. Communication is key to managing quiet quitting. Employees want to know their efforts are being recognized. Contact GMS today to learn more.

  • Assembly Bill (AB) 152 would extend California’s COVID-19 supplemental paid sick leave (SPSL) to December 31st, 2022. The California SPSL law is set to expire on September 30th, 2022, if Governor Gavin Newsom does not sign the bill. The law provides qualified full-time California employees with up to 80 hours of SPSL when they cannot work for the following reasons related to COVID-19:

    You are caring for yourself: 

    • Subject to a quarantine or isolation period
    • Advised by a healthcare provider to quarantine 
    • Experiencing COVID-19-related symptoms and seeking a medical diagnosis

    You are caring for a family member:

    • Child whose school or place of care is closed or otherwise unavailable for reasons related to COVID-19 on the premises
    • A family member who has COVID-19 or who is subject to a quarantine or isolation period

    Vaccine-related – you or a family member are: 

    • Attending an appointment to receive a vaccine
    • Recovering from symptoms of a vaccine

    How AB 152 Could Help Small Businesses

    If AB 152 is approved, it will establish the California Small Business and Nonprofit COVID-19 Relief Grant Program within the Governor’s Office of Business and Economic Development (GO-Biz). GO-Biz serves as the State of California’s leader for job growth, economic development, and business assistance efforts. The program would provide small businesses and nonprofit organizations grants up to $50,000 but “no more than the actual costs incurred for” SPSL between January 1st, 2022, and December 31st, 2022.

    In addition, employers would not be obligated to provide additional COVID-19 SPSL to employees who have already used their allotment for 2022. Employers should evaluate whether SPSL obligations pertain to their employees and whether they qualify for the small-business grant relief.

    GMS Is Here For Additional Support 

    While rules and regulations are constantly changing for small business owners, GMS experts are here to set you at ease. Our team partners with small business owners to take on the HR administrative burdens that shouldn’t stop you from growing your business. We will keep you up-to-date on rules and regulations vital to your business. In addition, we provide small businesses with benefits outsourcing services that allow your business to offer competitive, cost-effective benefits. Contact us today.

  • Governor Henry McMaster signed Bill S. 11 at the state house on August 25th. The bill allows employees in the state of South Carolina paid family leave for the birth of a child, adoption of a child, and fostering of a child. This follows McMaster’s call for a family leave bill in March 2020. 

    The paid family leave bill includes: 

    Birth of a child

    • Six weeks of paid leave for the employee who gives birth
    • Two weeks of paid leave for the employee who does not give birth but is a new parent

    Adoption of a child

    • Six weeks of paid leave for state employees who are the primary caregivers of the child
    • Two weeks of paid leave for the employee who is not primarily responsible for the care of the child

    Fostering a child

    • Two weeks of leave for employees who foster

    This bill will go into effect on October 1st, 2022. This bill helps families and helps the state retain its best employees with an additional benefit. 

    Benefits Administration Outsourcing With GMS

    As a business owner, it’s crucial to keep and attract quality employees so you can continue to grow your business. However, offering a quality benefits program is becoming increasingly expensive. Implementing benefits within your business can be a timely process. At GMS, our benefits outsourcing services allow your business to provide competitive, cost-effective benefits while you focus on growing your business. Learn how GMS can help you with added bills and ever-changing laws and regulations. Contact us today.

  • Many businesses have been forced to adapt to new working conditions due to the COVID-19 pandemic. As a result, many workers maintain a hybrid or remote work schedule. With the rise of remote employment, the focus has shifted to developing clear communication. This is vital to employers being able to communicate and meet the needs of their employees. Another major concern for employees stems from rising inflation and talk of an upcoming recession. This is the time when employees look to their employers for guidance. Let them know you care during the open-enrollment period by developing a plan that fits everyone’s needs.

    Communication Means Success

    As open enrollment is approaching, the need for effective and open communication is the biggest asset employers can implement. It’s imperative that employees have access to all information about each plan and can ask questions about it. Employees want to communicate with their employers. As the open enrollment period begins, they will be looking for guidance. Developing an open line of communication will create a happy, healthy, and productive workforce.

    Virtual communication is not likely to change anytime in the future. Even as businesses welcome their employees to return to in-person positions, virtual communication is here to stay. At the click of a button, employees can access their information when and where they need it. This will allow employees to understand their benefit plan offerings. When there is easier access to learning, employees will be more likely to take advantage of the offerings provided.

    GMS Steps In

    Many employers question which benefits their employees want to see during the open enrollment period. GMS can help you develop a plan that is right for your employees, along with creating a personalized experience working with a benefits account manager. Finding a plan that fits your business during open enrollment can be overwhelming. Let GMS simplify the process every step of the way, easing the line of communication with your employees. Contact us today to learn more.

  • California passed a program known as CalSaver in 2016, which stated that employers who don’t sponsor an employee-retirement plan must participate in a state-run retirement program. CalSavers is a retirement savings program for private sector workers whose employers do not offer a retirement plan. It gives employers an easy way to help their employees save for retirement without employer fees, no fiduciary liability, and minimal employer responsibilities.

    If you’re an employer who sponsors or participates in a retirement plan, including a 401(k) or pension plan, you are not required to participate in CalSavers. Eligible employers are defined as a “person or entity engaged in a business, industry, profession, trade, or another enterprise in the state, excluding specified federal, state, and local governmental entities, with five or more employees and that satisfies certain requirements to establish or participate in a payroll deposit retirement savings arrangement.”

    What The New Plan Means

    Governor Gavin Newsom recently signed Senate Bill (SB) 1126, expanding the definition of an eligible employee. Expanding eligibility will reduce complexity for employers and expand access to CalSavers to small businesses with one to four employees currently not covered. Ultimately, this bill will improve employee recruitment and retention across California. In addition, it’s estimated that SB 1126 will expand access to CalSavers to approximately three-quarters of a million California workers.

    A payroll deposit savings arrangement is required for employers with five or more employees that do not offer a retirement savings plan within 36 months of the board opening the program for enrollment. In addition, all eligible employers with one or more employees would need a payroll deposit savings arrangement by December 31st, 2025, if they don’t provide a retirement savings program.

    GMS Is Here To Help!

    Implementing a 401(k) retirement plan will help attract and retain great employees. It shows employees they are critical to your company’s success by rewarding them for their hard work. So, how does a PEO help you? PEOs such as GMS can leverage group buying power to reduce plan costs for small businesses and take on the fiduciary burden to ensure you remain compliant with your 401(k). GMS can help you set up fully customizable retirement savings plans that make your company more attractive to quality employees. Contact us today to learn more.

  • The Business Group on Health released its annual survey, which dictated that cancer is now the biggest driver of employer health costs. This annual survey examines large employers’ strategies around benefit design, cost management, and other healthcare strategies. This year, 13% of employers who partook in the survey said they had seen a significant increase in late-stage cancers among their employees. The survey was completed by 135 large employers covering more than 18 million lives within the U.S.

    The top three conditions that are fueling health care costs include:

    1. Cancer
    2. Musculoskeletal conditions 
    3. Cardiovascular disease

    Why Cancer Is Now The Top Driver 

    After analyzing the results from the survey, cancer is now the top driver of employer health care costs, most likely due to COVID-19 increasing delays in care and preventive services. Between 2019 and 2020, there was no increase in health care costs. As a result, there was an 8.2% spike in 2021.

    In 2022, employers expect to cover 82% of their workers’ health costs. This number has risen from 80% in the previous year. Employers are more reluctant to shift costs onto employees due to rising healthcare costs. Now, employers are considering alternative reforms, including advanced primary care and centers of excellence. A center of excellence is a program within a healthcare institution assembled to supply an exceptionally high concentration of expertise and related resources centered on a particular area of medicine, delivering associated care in a comprehensive, interdisciplinary fashion to afford the best patient outcomes possible.

    Additionally, employers are focusing more on policy efforts to lower healthcare and prescription drug costs. Prescription drugs accounted for 21% of employer health costs in 2021. More than half of that percentage was just for specialty medications. Employers are more concerned than ever about the increase in prescription drug costs.

    What Will You Do As A Business Owner? 

    While this new survey dictates that cancer is now the top driver in health care costs and prescription drugs are on the rise, as an employer, how will you protect your employees and your business? When you partner with GMS, you gain access to a GMS’ Rx specialist in addition to HR, benefits, payroll, and risk management expertise. Your Rx specialist will aid in searching for the most competitive prices on any prescription costs to save both you and your employees time and money. We offer flexibility, control of premiums, access to data and networks, and overall options that you can’t find elsewhere. Allow your employees to get the healthcare they need. Contact us today.

  • President Joe Biden announced a three-part plan to provide additional breathing room to America’s working families as they continue to recover from the effects of the COVID-19 pandemic. In his announcement, he shared that the federal government would cancel up to $20,000 of federal student loans for millions of individuals.

    More specifically, those earning less than $125,000 annually will receive $10,000 off their student loan debt. In addition, individuals who received Pell grants will have $20,000 in student debt removed. Federal Pell Grants are typically awarded only to undergraduate students with exceptional financial needs who have not earned a bachelor’s, graduate, or professional degree. However, not everyone with debt will qualify for student loan debt relief.

    What You Can Do As A Business Owner

    As an employer, your employees are your biggest asset. Without them, your business would not be able to grow. Alongside the most common employee benefits, including health insurance and retirement plans, providing student loan relief helps companies to attract and retain employees. A survey by the Employee Benefit Research Institute displayed that 17 percent of employers currently offer student loan debt assistance. In addition, 31 percent of employers plan to provide student load debt assistance in the future.

    However, many business owners are finding ways to lower costs, and cutting benefits has been one of them. There are additional steps you can take as an employer to provide your employees with student debt relief, including the following:

    • Offering student loan payment counseling
    • Third-party low-interest or interest-free educational loans
    • Debt consolidation 
    • Refinancing services
    • Tax-advantaged repayment support

    What Next?

    While President Biden’s student loan repayment announcement leaves you with questions and concerns as a business owner, GMS is here to put you at ease. If you’re a business owner considering offering your employees additional student loan relief, our benefits department has you covered. We work with you to provide your employees with the benefits they need. Don’t let the ever-changing rules and regulations keep you up at night. Contact us to learn more.